Bitcoin price hit a three-week high on Monday before pulling back. The market sentiment remains rather neutral as investors await a fresh catalyst. Optimism over the US debt ceiling deal has offered some support to the financial asset. Notably, the US jobs data scheduled for the later in the week will aso be influential.
What’s driving the market?
A look at the crypto fear & greed index points to a rather neutral market sentiment. Indeed, that has been the mood since last week. Most recently, concerns over the US debt ceiling and the country’s probable defaulting weighed on cryptocurrencies and other financial assets.
However, it has found some support in the progress of the talks between both sides of US lamakers. At the moment, investors are keen to see if the Congress and Senate will approve the reached deal. Its approval is set to improve the market sentiment and in turn boost cryptocurrencies.
In the ensuing sessions, the US jobs data may also be influential in the crypto market. Signs of a strong labor market may hint at the Fed maintaining a hawkish stance.
Bitcoin price prediction
Lower highs and lower lows have defined bitcoin price path in recent weeks. The outcome is a bearish channel that signals the cryptocurrency may remain under pressure for a while longer.
Granted, the asset has been trading above the 25 and 50-day EMAs since the beginning of the week. On Monday, it hit a three-week high at 28,508.37. As at the time of writing, it was at 27,767.24.
In the short term, the upper trend line highlighted in black will be a resistance level worth watching. This means that bitcoin price will likely continue to trade within a range of between 28,508.37 and 27,256.66.
While I have a bearish inclination, I expect 26,000 to be a steady support zone for bitcoin price in the short term. On the upside, the probable rebound past the resistance level at 28,508.37 may be curbed at around 29,000.